Lahore June 12 2023: Mughal Steel Limited informed that the project relating to feedstock processing plant for non-ferrous segment has successfully achieved CoD.
Company exported non-ferrous items of PKR 10.5 billion during the period from July to March 2023 compared with PKR 9.5 billion during the same period last year.
“Expansions in our non-ferrous segment will increase exports of copper and also to commence exports of aluminium ingots” says company Chief Executive Officer Khurram Javaid.
During the period from Jul to March 2023, political tensions, floods, rains, current account deficit, depreciating currency, struggling foreign exchange reserves and import restrictions, rising inflation, high discount rates and increase in energy cost, impacted the overall performance of the Company.
Amidst the prevailing adversities, despite the fact, that there was decline in volumes as compared to corresponding nine months period and overall gross margins also witnessed decline as compared to the corresponding nine months period both within the ferrous and non-ferrous segments, the Company managed to register its highest topline in absolute terms, and reported highest ever EBITDA of Rs. 6,220.515 million as compared to Rs. 6,176.110 million in corresponding nine months period. Export commission decreased since entire exports was to existing parties.
Sales and marketing expenses decreased by 28.62% mainly on account of reduction in advertisement expenses. Rs. 65.604 million was recorded on account of allowance for expected credit losses in respect of trade debts. Other charges decreased by 19.04% mainly due to decrease in provision for workers profit participation fund and workers welfare fund. Other income increased by 62.038% mainly on account of increase in foreign exchange gains in respect of exports. Finance cost increased significantly by 64.36% mainly due to significant hike in base discount rate. Resultantly, the Company posted profit for the period amounting to Rs. 2,647.499 million as compared to Rs. 4,370.002 million in corresponding period resulting in decrease of Rs. 1,722.503 million. Earnings per share (EPS) for the current period stood at Rs. 7.89 as compared to EPS of Rs. 13.02 in the corresponding period.
Additions in property, plant and equipment mainly represented additions in capital work-in-progress relating to installation of induction furnaces and non-ferrous expansion. Cash and bank balances decreased by 37.73%. mainly due to utilization of funds reserved for repayment of Islamic Commercial Paper (ICP). Accrued profit / interest / mark-up increased mainly due to increase in base rate by SBP. Trade debts increased significantly by 55.83% mainly due to increase sale rates and temporary increase in credit days in the quarter. Loans and advances increased mainly on account of advances to local raw material suppliers. Resultantly, the statement of financial position footing stood at Rs. 55,378.178 million as of March 31, 2023, compared to Rs. 53,085.460 million as of June 30, 2022. Breakup value per share increased to 69.58 as of March 31, 2023 from Rs 62.11 as at June 30, 2022.
